Forsage co-founder denies allegations in $340 million crypto Ponzi scheme

Odaily Planet Daily reported that Olena Oblamska, co-founder of the crypto platform Forsage, has pleaded not guilty to charges of conspiracy to commit wire fraud after being extradited from Thailand to the United States.

Launched in January 2020, Forsage marketed itself to global retail investors as a smart contract-based DApp investment platform. The U.S. Department of Justice alleges the platform used smart contracts on Ethereum, TRON, and BNB Chain to automatically redirect funds from new participants to earlier investors, constituting a Ponzi and pyramid scheme.

Blockchain analysis shows that over 80% of Forsage investors received less cryptocurrency than they deposited, and more than 50% received no returns at all. The scheme defrauded victims from the United States, Europe, Asia, and Latin America of approximately $340 million. The U.S. Securities and Exchange Commission filed a civil lawsuit against those involved in August 2022. (FinanceFeeds)